Collective Action Problems • Public goods; something you enjoy such that if other people produce that good you still get to enjoy even If you didn’t get to pay the cost of producing it o Nonexcludability: Someone else’s enjoyment does not take away from your enjoyment o i.e., clean parks, clean air, national defenses to protect you from foreign invasion (free riding off of others who pay taxes to utilize this public good) • Private goods: things that are excludable in order to enjoy them, you have to pay for them o Differences between public goods vs. private goods; this notion that there are certain things that society wants to produce that not everyone needs to pay for but then there are things people must pay for • Free riding: severe problem o You want other people to clean and you to just enjoy the space; someone buys a TV in the common room and you watch it Coordination Problems • We all would like to be on the same page but we have trouble coordinating and agreeing • You prefer to coordinate then not coordinate but it’s a problem because

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